Together with

Good Morning,

SpaceX wants to IPO Starlink, Biden and Xi’s high stakes meeting began, UK inflation hit a two-year low, Microsoft is working on its own AI chips, US retail sales fell for the first time since March, UAW workers at GM’s largest plant backed the labor pact, and housing inflation is hitting consumers the hardest.

With equity and debt markets as volatile as ever, many investors are looking to invest in uncorrelated assets. Accredited investors can access private credit opportunities with APYs up to 20% with today’s sponsor, Percent.

Let’s dive in.

Before The Bell

Markets

• US stocks climbed thanks to positive October PPI data

  • The Dow led indices with a 0.6% gain 

• European stocks climbed in response to better-than-expected US inflation data

Earnings

• Target shares rocketed 18% after blowing past Q3 earnings expectations and beating on revenue; the retailer still sees weaker discretionary spending (CNBC)

• Cisco shares fell 10% despite beating Q1 earnings and revenue expectations due to a revenue forecast well below analyst expectations (BRRN)

• What we're watching this week:  

  • Today: Walmart, Alibaba, Applied Materials, Macy’s

  • Friday: BJ’s

• Full calendar here

Headline Roundup

• Biden, Xi begin high stakes meeting in California (WSJ)

• UK inflation slows to two-year low, bolstering rate cut bets (BBG)

• Microsoft introduces its own chips for AI, with eye on cost (RT)

• US retail sales fall for first time since March as holiday season approaches (WSJ)

• Target CEO claims customers are saying ‘a big thank you’ for locking up merchandise (CNBC)

• FDIC Chairman denies being investigated, then changes testimony (WSJ)

• Microsoft is fine avoiding China as US considers national security implications, CEO says (CNBC)

• UAW workers at GM’s largest plant back labor pact, boosting deal’s chances (WSJ)

• America’s mortgage king also wants an NBA crown (WSJ)

• Housing inflation is hitting consumer sentiment harder than other prices (WSJ)

• FAA clears SpaceX to launch second Starship flight (CNBC)

• Food inflation seen easing next year in respite for consumers (BBG)

• Judge sides with Paramount on some claims in Warner Bros. ‘South Park’ streaming lawsuit (CNBC)

• Macron seeks to reboot agenda by cutting red tape (BBG)

A Message From Percent

Finding returns in a high-interest rate environment

Higher interest rates and market volatility are making it harder for investors to find above-market returns.

However, private credit investments may outperform traditional markets over the next 5 years, according to research from KKR**. In fact, they expect private credit returns to outpace the S&P 500 in the next 5 years.

Private credit used to be reserved only for big-name institutional investors, but today, Percent is making these investments accessible to everyday accredited investors.

On Percent, it’s easy to find, compare, invest and track your private credit investments. 

You’ll get access to:

• Attractive yields. As of October 31, Percent’s weighted average APY is 18.58%.

• Diversification. Returns are generally independent from public market performance.

• Liquidity. Deals can mature in less than a year, with some offering liquidity after a few months.

Check out Percent by clicking below, and get up to a $500 signup bonus with your first investment!

Deal Flow

M&A / Investments

• Japan’s Tsuruha Holdings is considering a sale for ~$4B or more after a proxy battle with activist investor Oasis Management (RT)

• ByteDance is considering selling gaming studio Shanghai Moonton Technology, which it bought for ~$4B (BBG)

• Siemens intends to buy an 18% stake in Indian joint venture Siemens from Siemens Energy at a 15% discount for $2.3B (RT)

• China Huarong Asset Management, one of China’s largest distressed debt managers, agreed to buy a 5% stake in Chinese state-owned investment company Citic for $1.7B (BBG) 

• PE fund Spectrum Equity acquired a 20% stake in UK-based Benchmark Mineral Intelligence in a deal that values the EV supply chain information provider at ~$500M (RT)

• European fund distribution platform Allfunds Group started gauging takeover interest from PE firms for a potential sale (BBG)

• Manulife Investment Management, the global wealth and asset management arm of Canada’s largest insurer Manulife Financial, will buy London-based alternative credit manager CQS (RT)

• Auditing and consulting group Mazars agreed to combine its business with Forvis, a top 10 American accounting firm by revenue (FT)

VC

• Fashion brand Urbanic raised a $150M Series C led by D1 Capital Partners, Mirabaud Lifestyle Impact & Innovation Fund, and more (FN)

• Element Energy, a Menlo Park-based battery management technology startup, raised $111M in financing: a $73M Series B co-led by a large clean energy generation company and Cohort Ventures and a $38M debt facility provided by Keyframe Capital Partners (PRN)

• RefleXion, a therapeutic oncology company, raised a $105M round led by The Rise Fund (BW)

• Cytovale, a commercial-stage medical diagnostics company focused on advancing early detection technologies, raised an $84M Series C led by Norwest Venture Partners (PRN)

• Edgio, a company that helps companies deliver online experiences and content faster, safer, and with more control, raised $66M in financing from Lynrock Lake Master Fund (BW)

• Vulcan Cyber, developers of the cyber risk management platform for all attack surfaces, raised a $55M Series B led by Maor Investments and Ten Eleven Ventures (PRN)

• Tenet, a climate fintech platform helping consumers and businesses drive EVs, raised $30M+ in funding: a $10M Series A led by Nyca Partners and a $20M warehouse debt facility from Silicon Valley Bank (BW)

• Silicon photonics startup SiLC Technologies raised a $25M Series A extension from Hokuyo Automatic, Hankook, and ROHM (BW)

• Cloud data access and security startup ALTR raised a $25M Series C led by John Stafford III (VC)

• Asset management firm Superstate raised a $14M Series A led by Distributed Global and CoinFund (BW)

• Guest experience technology startup Virdee raised a $12.4M Series A led by Moneta Ventures (VC)

• Sunnyside, a mindful drinking app, raised an $11.5M Series A led by Motley Fool Ventures (TC)

• French single-use plastic product startup Le Fourgon raised a $10.8M Series A led by Id4 and Teampact (EU)

• Martian, a startup automating switching between Large Language Models (LLMs) to reduce costs, raised a $9M round from NEA, Prosus Ventures, Carya Venture Partners, and General Catalyst (TC)

• Cybersecurity startup Radicl raised $9M in funding led by Paladin Capital Group (FN)

• Revenue-based financing marketplace Levenue raised an $8.7M Series A led by Truffle Capital (EU)

• Inito, a startup helping women track fertility hormones quickly at home, raised a $6M Series A led by Fireside Ventures (TC)

• InPlanet, a Munich-based startup working on carbon removal, raised $5.8M in funding led by FoodLabs and Salvia (FN)

• Launchpad.build, a startup using AI to deliver robotics and automation capabilities, raised $5.5M in funding from Lockheed Martin Ventures (VC)

• Carbon conversion startup OCOchem raised a $5M seed round led by TO VC (PRN)

• AI-powered medical knowledge platform Pathway raised a $5M seed round led by Yamaha Motor Ventures (BW)

• OpsLab, a startup providing smart assistants for operational planning and tracking, raised a $5M seed round led by Cultivation Capital (FN)

• Quoherent, a startup developing room-temperature edge-capable quantum processors, raised a $4.7M seed round led by Morpheus Ventures (BW)

• AI-powered IP management platform Tradespace raised a $4.2M seed round led by Eniac Ventures (FN)

• Fortuna Health, a consumer-first platform simplifying Medicaid navigation, raised a $4M seed round led by a16z (BW)

• Composability platform Canopy raised a $4M seed round from Kindred Ventures and Village Global (FN)

• Uniblock, a startup aiming to be the default developer platform for blockchain, raised $2.3M in funding from Cadenza, Blockchain Founders Fund, Side Door Ventures, and more (PRN)

• Italian climate tech startup CarpeCarbon raised a $1.8M pre-seed round led by CDP Venture Capital (EU)

• AI startup Tech Spark AI raised a $1.4M pre-seed round led by TD Bank (TC)

• Bio-Logical, a Kenyan climate tech company, raised a $1M seed round led by Steyn Group (FN)

IPO / Direct Listings / Issuances / Block Trades

• Sanofi is starting preparations for a planned separation of its consumer health division, which may be valued at over $20B; the unit has also attracted interest from major buyout firms (BBG)

• Fibra Next, which includes properties owned by Latin America’s largest REIT, plans to raise up to $864M in the biggest Mexican IPO since 2018 (BBG)

• SpaceX is discussing an IPO for its fast-growing Starlink satellite business as soon as late 2024 (BBG)

• Moroccan carmaker Neo Motors is targeting a listing on the kingdom’s main stock exchange to expand its EV production (BBG)

Debt

• Investment banks and private lending firms are working on plans to provide as much as $3.3B of debt to back a potential buyout of German metering company Techem, which could fetch a valuation of up to $8.7B (BBG)

• Barclays attracted $22B of demand for its $1.75B dollar perpetual AT1 note sale (BBG)

• Tullow Oil will buy back as much as $300M worth of senior notes callable in 2025 with a $400M debt facility with Glencore (BBG)

Bankruptcy / Restructuring

• Austrian tycoon Rene Benko’s Signa Prime unit has approached investors over the last few days seeking up to $2.2B to bridge a funding gap (BBG)

• Starboard Group of Alabama, a Wendy’s franchise restaurant operator in the Southern US, filed for Chapter 11 bankruptcy (BBG)

Fundraising

• Netherlands-based healthcare investor Gilde Healthcare closed its Gilde Healthcare Venture & Growth VI fund at $803M (FN)

• VC Female Founders Fund is looking to raise $75M for its fourth fund (TC)

Crypto Corner

• Commerzbank received a crypto custody license in Germany (RT)

• SEC yet again deferred making a decision on whether to approve the first US exchange-traded fund that invests directly in Bitcoin (BBG)

Exec’s Picks

• Asia-based hedge funds are beginning to mimic Citadel’s client-fee model to cover higher compensation costs to pay top talent.

• Algy Hall discussed how ‘Canada’s Warren Buffett,’ Mark Leonard, has delivered a 34,000% return with Constellation Software.

Litney Partners - Financial Recruiting 💼💼

If you're currently a junior investment banker looking to break into the buy side, considering lateraling to another investment bank, or have recently been impacted by widespread layoffs, it's time you check out Litney Partners, a partnership between Litquidity and Whitney Partners (the oldest purely financial services executive search and consulting firm).

We aim to place strong candidates at leading private equity, hedge fund, venture capital, growth equity, and credit funds, as well as investment banks.

To get started, simply head over to the Litney website and create your profile by dropping your resume / filling out the form:

Meme Cleanser

Advertise with us // Visit our merch store // Invest alongside Lit Ventures // Book a call with Lit // Launch your own newsletter